Looking for the low-down on the likely impact of public spending cuts on the third sector?

As a starting point, here’s the Treasury press statement of the 24th may 2010. Clare Yeowart at New Philanthropy Capital has begun a more detailed analysis here of the implications for charities. BUt the prize currently goes to Karl Wilding at NCVO for the labour of love he has begun here in a post titles ‘The axeman cometh’.

Based partly on Institute for Fiscal Studies data, Wilding estimates that the impact on the wider third sector will be to effectively set it back six to seven years, returning its funding from public sources to 2003/04 levels.

He follows this with some interesting speculation regarding which organisations — of the c.40,000 VCOs in direct receipt of public funds — will be hit hardest. This shows that the sectors at greatest risk — i.e. those receiving the greatest proportions of public funding (whether by grant, SLA or contract) — are: employment and training; education; law/advocacy; social services; housing; umbrella bodies; health; and development. These all receive in the order of 40%-70% of their income from public/statutory sources. There is then a major step down to culture and recreation (25%).

IN an attempt to ‘crowdsource’ more widely representative data, NCVO has a new link here for organisations to contribute their own information.

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